Introduction
In the rapidly evolving world of business and finance, cap table management has become a critical aspect for startups and growing companies. The need to accurately manage shareholder information, equity distribution, and complex financial modeling requires specialized tools. Two such prominent platforms in the field are Pulley and Carta. Both offer comprehensive solutions to handle intricate financial structures, but they approach these challenges with differing focuses and strengths. Pulley emphasizes swift onboarding, transparent pricing, and flexibility tailored to founders’ needs. In contrast, Carta builds on its rich industry experience, offering in-depth support and tools that scale with a company’s growth journey. While both platforms are highly rated and trusted by many companies, understanding the nuanced differences between Pulley and Carta can be vital for organizations looking to make an informed decision. In this comparison, we will delve into key areas including onboarding, features, pricing, reporting, scalability, and credibility to provide a balanced perspective. Whether you’re at the early stages of your venture or preparing for an IPO, this guide aims to equip you with the insights needed to choose the solution that best aligns with your company’s specific goals and requirements.
Pulley Cap Table Management Software
Overview of Pulley
Pulley is a specialized cap table management software designed to simplify the intricate world of equity management for startups and growing companies. Operating from the United States, Pulley by Prolific Labs Incorporated was founded in 2019. Its vision is to streamline the management of capitalization tables, option grants, and other equity-related tasks. A capitalization table, or cap table, is a critical document for any company with equity stakeholders. It outlines the ownership stakes, including shares, options, and equity grants, and it can quickly become complex as a company grows. Pulley’s software is designed to handle this complexity with efficiency. Pulley offers various pricing tiers catering to different stages of a company, from seed to growth. The features include cap table management, 409A valuations, electronic sending and signing of option grants and SAFEs, fundraising modeling, and more. Pulley also provides support for tax withholdings, membership interests, and custom reporting. By centralizing all equity-related data and processes, Pulley enables businesses to focus on growth.
Pulley’s Key Features
- Cap Table Management: Helps companies maintain and manage a clear and transparent cap table, keeping track of all equity information in one place.
- Fundraising Modeling: Aids in the forecasting and planning of fundraising rounds, assisting companies in understanding the potential impacts of different funding scenarios.
- 409A Valuations: Provides 409A valuations within 5 days, necessary for determining the fair market value of a company’s common stock.
- Employee Experience: Offers a user-friendly platform for employees to monitor their vesting schedule and understand their equity.
- Compliance Support: Handles equity compliance processes such as 83b elections, form 3921, and stock-based comp reports, making it easier to adhere to necessary regulations.
- Support for Various Ownership Structures: Pulley accommodates various ownership structures including crypto & tokens, private equity, and LLCs.
Pros
- Robust features for managing cap tables, reducing the need for multiple tools.
- User-friendly interface helps employees understand their equity and vesting schedule.
- Helps with complex compliance tasks, such as 83b elections and form 3921.
- Get a 409A valuation in five days or less.
- Supports several ownership structures, including private equity, LLCs, and crypto & tokens.
- Supports both US and international equity grants.
- Companies with up to 25 stakeholders can use Pulley for free.
- Provides guides and resources to better understand equity and scaling startups.
- Concierge onboarding in 7-10 days for all plans led by cap table experts.
- Fast, experienced and responsive customer support team.
Cons
- The pricing might be a concern for larger companies or rapidly growing startups.
- There can be a learning curve for users who are unfamiliar with equity management.
- Primarily focussed on equity management (it can be an issue if you want multiple services for your business).
- Only supported on SaaS platforms (no Windows, Android, or iOS-specific applications).
Pulley’s Pricing
Pulley offers a variety of pricing plans tailored to different stages and needs of startups, ranging from new and smaller businesses to those experiencing significant growth. Here’s an overview:
- Seed Plan (Free): Includes cap table management, share certificates, electronically sending & signing option grants, SAFEs, fundraising modeling, option and equity templates.
- Startup Plan ($1200/year): Includes everything in the Seed plan. Additional features include concierge onboarding, offer letters, and a communications hub.
- Growth Plan ($3500/year): Includes everything in the Startup plan. Additional features include 409A valuations, replacement for Docusign to issue equity grants, electronic option exercises, Rule 701, Form 3921, board approvals, HRIS integration.
- Custom Plan (Contact for Pricing): Includes everything in the Growth plan plus ASC 718, priority onboarding, phone support, waterfall modeling, and custom reports.
From the free Seed plan geared towards smaller startups, to the fully customizable option for larger companies, Pulley’s pricing structure offers flexibility and scalability.
For a detailed review of Pulley, click here.
Carta Cap Table Management Software
Overview of Carta
Carta is on a mission to democratize equity, aiming to create more owners across the globe. With 35,000 companies and more than 2.4 million equity owners on its platform, Carta breaks the traditional boundaries of capital markets. Its commitment to transparency and equality in equity is reflected in its comprehensive offerings. The platform’s services include cap table and ESOP management, ESOP valuations, scenario modeling, and more. With a global presence spanning locations like San Francisco, Singapore, Rio de Janeiro, and New York, Carta is a leader in equity management, supported by a robust network of investors who share the company’s vision.
Carta’s Key Features
- Cap Table & ESOP Management: Offers an effortless way to manage cap tables and Employee Stock Ownership Plans (ESOPs).
- Built-in Compliance Tools: Provides custom reports, valuations, and quality checks to ensure legal compliance.
- Shareholder Portal: A user-friendly interface to manage securities, track vesting, and exercise options.
- Scenario Modeling: Tools to help visualize and plan for various funding scenarios, including impact on shareholders and dilution.
- Automated Expense Reporting: Ability to automate the fair value calculation for stock-based compensation, reducing manual workload.
Pros
- Consolidates various equity management functions into one platform.
- Offers different plans for companies at various stages, from seed to mature companies.
- Fast, defensible, and cost-effective valuations for ESOPs, suitable for audit purposes.
- Cap tables update with every transaction, keeping all information current and accurate.
Cons
- The wide range of features may be overwhelming for very small startups or companies with simple needs.
- Depending on the chosen plan and specific needs, the cost might be a barrier for some companies.
Carta’s Pricing
Carta offers three different packages for businesses in need of tax preparation, accounting, and bookkeeping services. Here’s a summary of each plan:
- Build Plan: Includes cap table management, share certificates, electronically sending & signing option grants, SAFEs, fundraising modeling, option and equity templates.
- Growth Plan: Includes everything in the Startup plan. Additional features include 409A valuations, replacement for Docusign to issue equity grants, electronic option exercises, Rule 701, Form 3921, board approvals, HRIS integration.
- Scale Plan: Includes everything in the Growth plan plus ASC 718, priority onboarding, phone support, waterfall modeling, and custom reports.
Contact Carta for exact pricing details.
Pulley vs. Carta
Let’s take a look at the differences between Pulley and Carta, two cap table management software platforms.
- Onboarding and Support
- Pulley: Offers concierge onboarding in 7-10 days, with support from cap table experts and AI. Pulley emphasizes quick response times from a team of seasoned founders and lawyers.
- Carta: Onboarding may take up to 30 days. Carta also provides ongoing support through various channels like phone, email, and in-app chat, emphasizing experience and deep industry knowledge.
- Features and Functionality
- Pulley: Boasts features such as five-day 409A valuations, advanced fundraising modeling, quick stock splits processing, and support for various equity types and arrangements.
- Carta: Offers robust functionality like HMRC and IRS support, comprehensive 409A valuations from experienced analysts, streamlined tender offers, and compensation management with real-time market data.
- Pricing
- Pulley: Offers a clear pricing structure and provides a free plan for seed stage companies.
- Carta: Pricing may be less transparent, requiring a discussion with a sales representative.
- Reporting and Analysis
- Pulley: Offers comprehensive reports that summarize each element of the equity plan and cap table.
- Carta: Provides a wide variety of reports, but some data may require manual calculations, offering insights-at-a-glance and tools for compensation management and equity deep dives.
- Scalability
- Pulley: Engineered to handle complex cap tables and offers features like token cap tables for web3 startups.
- Carta: Promises to scale with the company throughout its journey, providing tools suitable for various stages, from startup to IPO readiness.
- Trust and Credibility
- Pulley: Highlights its focus on founders and emphasizes its customer-centric approach.
- Carta: Has been in the industry for over a decade and is trusted by a huge number of companies, showcasing partnerships with a community of law firms, accelerators, and VCs.
Key Takeaways
Both Pulley and Carta offer unique advantages in cap table management. Pulley may be more appealing for those looking for fast onboarding, transparency in pricing, and tailored features for complex equity arrangements. Carta, on the other hand, emphasizes its long-standing industry presence, extensive support options, and its ability to scale with the company’s growth. The choice between the two may depend on specific needs, such as speed and flexibility versus depth of experience and a comprehensive suite of services.
